20 September 2016
BHP Billiton today released its Economic contribution and payments to governments Report which shows the Company’s total economic contribution globally in the 2016 financial year was US$26.7 billion. This includes US$3.7 billion globally in taxes, royalties and other payments to governments.
Releasing the report today, BHP Billiton Chief Financial Officer Peter Beaven said the Company’s adjusted effective tax rate in the 2016 financial year was 35.8 per cent, demonstrating BHP Billiton pays its fair share of tax. When royalties are included, the rate is more than 58 per cent.
“The Company’s adjusted effective tax rate averaged 31.9 per cent over the past decade, and 39.8 per cent when royalties are included,” Mr Beaven said.
“Over the last decade, our average effective tax rate was higher than the 30 per cent company rate in Australia and the average OECD rate of 25 per cent.”
Mr Beaven went on to say that the Report builds on BHP Billiton’s commitment to transparency.
“Debates about tax need to be informed by facts. It is crucial that the conversation addresses how tax systems take into account the realities of operating in a global economy as well as national interests. This will enable stable investment environments that encourage growth and development,” Mr Beaven said.
The Report details payments made to governments during the 2016 financial year on a country-by-country and project-by-project basis, as well as the significant contribution to suppliers, voluntary contributions to host communities, wages and employee benefits and dividends. It also includes additional information disclosed on a voluntary basis.
In the last decade, BHP Billiton has paid approximately US$85 billion globally in taxes, royalties and other payments to governments, including US$58 billion (A$65 billion) in Australia.
The Company also released its Annual Report and Sustainability Report today.
BHP Billiton Annual Reporting suite 2016
Annual Report 2016 (PDF 6.5 MB)
BHP Billiton Sustainability Report 2016 (PDF 3.5 MB)
For more information, please see our News Release.